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Home Affordability Calculator

See the maximum home price your income can comfortably support.

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How It's Calculated

Max Monthly Housing = (Gross Monthly Income × Target DTI%) − Other Monthly Debts. About 80% of that is assumed available for principal & interest, with the remainder reserved for taxes and insurance.

Max Loan Amount is solved from the mortgage payment formula in reverse.

Example

Example: $95,000 income, $400 in other debts, and a 36% target DTI allows about $2,450/month toward housing. At 6.5% over 30 years, that supports a loan near $310,000 — plus your $60,000 down payment, a maximum home price of roughly $370,000.

Frequently Asked Questions

Why only 80% of the housing budget for P&I?

The remaining ~20% is a simplified reserve for property taxes, homeowners insurance, and HOA dues, which vary significantly by location.

Should I spend right up to my maximum?

Lenders qualify you up to this limit, but many financial planners recommend keeping housing costs well below your maximum for a comfortable safety margin.

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